Correlation Between Empresas CMPC and Salfacorp
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By analyzing existing cross correlation between Empresas CMPC and Salfacorp, you can compare the effects of market volatilities on Empresas CMPC and Salfacorp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Empresas CMPC with a short position of Salfacorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empresas CMPC and Salfacorp.
Diversification Opportunities for Empresas CMPC and Salfacorp
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Empresas and Salfacorp is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Empresas CMPC and Salfacorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salfacorp and Empresas CMPC is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Empresas CMPC are associated (or correlated) with Salfacorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salfacorp has no effect on the direction of Empresas CMPC i.e., Empresas CMPC and Salfacorp go up and down completely randomly.
Pair Corralation between Empresas CMPC and Salfacorp
Assuming the 90 days trading horizon Empresas CMPC is expected to generate 3.18 times less return on investment than Salfacorp. In addition to that, Empresas CMPC is 1.08 times more volatile than Salfacorp. It trades about 0.03 of its total potential returns per unit of risk. Salfacorp is currently generating about 0.11 per unit of volatility. If you would invest 25,157 in Salfacorp on September 5, 2024 and sell it today you would earn a total of 30,489 from holding Salfacorp or generate 121.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Empresas CMPC vs. Salfacorp
Performance |
| Timeline |
| Empresas CMPC |
| Salfacorp |
Empresas CMPC and Salfacorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empresas CMPC and Salfacorp
The main advantage of trading using opposite Empresas CMPC and Salfacorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empresas CMPC position performs unexpectedly, Salfacorp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Salfacorp will offset losses from the drop in Salfacorp's long position.| Empresas CMPC vs. Empresas Copec SA | Empresas CMPC vs. Cencosud | Empresas CMPC vs. Falabella | Empresas CMPC vs. Sociedad Qumica y |
| Salfacorp vs. Aguas Andinas SA | Salfacorp vs. Parq Arauco | Salfacorp vs. Enel Generacin Chile | Salfacorp vs. Sociedad Matriz SAAM |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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